Passive funds (usually index funds) generally choose specific index stocks as investment targets, trying to replicate the performance of the index, rather than actively seeking to surpass the market. Passive index fund is a fund product that usually chooses a specific index component as the investment object and tracks the underlying index. Simply put, investors don't need to deliberately understand the rise and fall of funds, just like an index. For example, the index fund of Shanghai and Shenzhen 180, if the index fund of Shanghai and Shenzhen 180 fell by -0.32%, then the passive index fund you bought also fell by -0.32%. At present, the mainstream tracking indexes in the market are Shanghai and Shenzhen 300 Index, Shanghai 50 Index and S&P 500 Index. ?

Select a fund with a fund size greater than 1 100 million. Small funds are prone to liquidation risk. Index funds are suitable for fixed investment, and a fixed amount is spent every month to buy index funds. Ordinary people can also get good returns. We buy funds according to the valuation, and buy them when the valuation is low, but it does not mean that they will not fall again, but will only rise. Low valuation does not mean the lowest point. We can't afford the lowest price. This means that we may fall even lower for a period of time after buying.

Because passive funds (index funds) do not need the investment and research ability of fund managers, they only need index funds to track the index well. So if you analyze the index well, you will succeed more than half. Let's see what a good tracking index is. In fact, the constituent stocks of each index are public, and fund managers can directly buy corresponding stocks according to these constituent stocks. The task of index funds is as simple as that. ?

The passive index fund itself aims at tracking the index, so if the error between the fund and the index is large, then even if the income is good, it is not our ideal passive index fund, so the tracking error of the fund is small, which we can see in the introduction of the fund or in the regular report of the fund.